MANILA - Bank lending and the amount of money circulating in the country's financial system both expanded in November, the Bangko Sentral said on Wednesday citing preliminary data.
The BSP said outstanding loans of universal and commercial banks grew by 10.1 percent in November last year compared to the same month in 2018.
Loans for production activities grew 8.1 percent in November, driven primarily by lending to real estate, financial and insurance activities, construction and others.
Loans for household consumption, meanwhile, grew by 26.6 percent due to faster growth in car loans.
Domestic liquidity also expanded in November by 9.8 percent to about P12.4 trillion.
Demand for credit remained the principal driver of money supply growth, the BSP said.
With inflation easing last year, the central bank cut its key rate thrice for a total of 75 basis points, bringing it to 4 percent.
It also slashed 400 basis points off the RRR or reserve requirement ratio for banks, increasing the amount of money banks can lend to clients.
Analysts, however, expect the BSP to resume monetary easing this year, with some saying the central bank will likely cut its policy rate by 50 basis points, and the RRR by another 200 basis points.